Closed out Puts on AIG

By | September 25, 2008

As anticipated AIG’s rally would not hold. AIG gave up yesterday’s gains and closed at 3.31, the lowest point of the day.

I bought AIG 4 puts @ 0.70 / contract on 9/22
I sold AIG 4 puts @ 0.85 / contract on 9/24
Gain: $254 (+21%) before commissions

I also bought GS puts on Monday (9/22), but my plan was spoiled by Bershire’s $5B stake after the close of yesterday’s markets. I am still holding the puts with a sizable amount and waiting for a good price to sell.

One thought on “Closed out Puts on AIG

  1. Smarty

    Today, the AIG 4.00 puts closed at $1.60. That would have been 128% increased if I held the puts for one more day.

    Reply

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